PANews reported on December 21 that according to The block, stablecoin issuer Tether has made a $775 million "strategic investment" in video sharing platform Rumble. The move seems to indicate that Rumble is deepening its focus on the cryptocurrency industry. The company announced last month that it would allocate up to $20 million of its excess cash reserves to Bitcoin.
Rumble said it will use $250 million of the proceeds to "support growth initiatives." The remaining funds will be used to acquire up to 70 million Class A common shares at $7.50 per share, the same price at which Tether invested. Rumble Chairman and CEO Chris Pavlovski will retain his controlling stake in the company and said no more than 10 million shares will be sold. Tether will purchase a total of 103,333,333 shares.
